How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In...

42
How to Select a Split Case Picking System Track 4 Session 6

Transcript of How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In...

Page 1: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

How to Select a Split Case Picking System

Track 4 Session 6

Page 2: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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2

Contact Us

▪ (514) 482-3572 x100

▪ www.mwpvl.com

[email protected]

▪ MWPVL International, Inc.

▪ President

▪ Marc Wulfraat

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Abstract

3

This omnipotent presentation provides an objective and

unbiased comparison of multiple leading split case

order picking technologies. Each technology solution

will be described with pros and cons, "best fit"

applications, labor requirements, price points, and

more. Solutions discussed will include voice-directed

picking, pick to light, and multiple Goods to person

systems including Multishuttle, Autostore, Miniload

ASRS, horizontal carousels, and Kiva bot-based

systems.

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Agenda

4

Scenario Concept Environment System / Technology

1 Person to Goods Paper-Based Paper Pick List

2 Person to Goods RF

RF Scanning

3 Person to Goods Pick to Cart Pick to Light, Voice or RF

4 Person to Goods Pick to Light Pick to Light to Conveyor

5 Person to Goods Voice / RF Voice with Optional RF

6 Goods to Person Automated Horizontal Carousel

7 Goods to Person Automated Miniload ASRS

8 Goods to Person Automated AutoStore

9 Goods to Person Automated Kiva Systems

10 Goods to Person Automated Multi-Shuttle

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Opening Comments

5

In this presentation we compare different

several strategies for split case order picking

It is very difficult to generalize when discussing

so many different solutions within a 60 minute

presentation and we do not have time to cover

all solutions

Our goal is to provide objective fact-based

information to help people understand why

certain technologies / systems fit in certain

environments

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Warehouse Labor Breakdown Split Case & Full Case Retail Distribution 4.3M Pieces/Wk

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High Volume Split Case / Full Case

Operation Shipping 4.3 Million

Pieces/Week

Job

Function

Throughput

Rate (Based on

Paid Hours)

Metric per Hour Split Case

(Total Hours)

Full Case

(Total Hours)

Total Annual

Hours (All-

Inclusive)

Warehouse Direct Labor Activity

Receiving Receiving 46.5 Inbound Lines 10,592 4,162 14,755

Putaway Putaway 19.4 Inbound Lines 25,412 9,986 35,398

Replenishment / Letdown - Split Case Replenishment 9.4 Inbound Pallets 52,397 - 52,397

Replenishment / Letdown - Full Case Replenishment 23.6 Inbound Pallets - 8,202 8,202

Flow Rack Cutting / Stuffing Replenishment 180 Inbound Cases/Hour 73,495 - 73,495

Split Case Order Selection Order Selection 761 Outbound Pieces/Hour 286,590 - 286,590

Full Case Order Selection Order Selection 92.6 Outbound Cases/Hour - 55,987 55,987

Leads Order Selection 9,820 Outbound Pieces/Hour 17,296 5,428 22,724

Wait Chasing - Split Case Order Selection 23,675 Outbound Pieces/Hour 9,206 - 9,206

Wait Chasing - Full Case Order Selection 1,794 Outbound Cases/Hour - 2,890 2,890

Stacking to Pallets Packing 138.7 Outbound Totes/Hour 44,533 - 44,533

Loading Loading 15.5 Outbound Pallets/Hour 12,333 8,342 20,675

Inventory Control Inventory Control 4,758 Outbound Pieces/Hour 35,697 11,202 46,899

Pallet Sortation Other 140 In&Out Pallets/Hour 4,892 2,309 7,201

Tote Hauling Putaway Other 515 Outbound Totes/Hour 11,995 - 11,995

Returns/Dammage Processing Other Outbound Pieces/Hour 5,023 119 5,142

Cross Dock Labor: Inbound Cross Dock 20.0 Outbound Pallets/Hour - 6,448 6,448

Cross Dock Labor : Outbound Cross Dock 20.0 Outbound Pallets/Hour - 9,678 9,678

Subtotal Direct Labor 121.0 589,461 124,754 714,215

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Inventory Control, 6.1%

Loading, 2.1%

Order Selection, 53.1%

Other, 3.7%

Packing, 7.6%

Putaway, 4.3%

Receiving, 1.8%

Replenishment, 21.4%

Warehouse Split Case Labor Hours by Job Function

Distribution Center Labor Division of Labor by Job Function for Split Case

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In split case warehouse operations, order picking is costly and typically accounts for 50-55% of warehouse labor expense. Putaway and

Replenishment work typically accounts for 25+% of labor expense.

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Person to Goods Picking Strategies

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Paper Based (Pick to List) Order Picking

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Person to Goods (PTG) Picking

with Paper Lists or labels:

- Still the solution of choice for a

majority of warehouses around the

world

- Pick lists are printed and used to

guide the picking process

- Pick Lists are also used to confirm

order at packing / shipping

Benefits:

- Simplest form of picking

technology

- Inexpensive

- Minimal technology requirements

Shortcomings:

- Managing a high volume of

manual paper lists is inefficient

and error prone

- Low productivity / accuracy

- Can cause throughput capacity

constraints within an operation

- Not real-time

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Paper Based (Pick to List) Order Picking

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When to Consider

- Low volume throughput

warehouse operations

- Temporary facilities

- Low value product being

shipped in small volumes

- Environments where it is

difficult to cost justify

investments into technology

such as in low wage countries

Investment Minimal: e.g. $5,000

Receiving /

Putaway Rate

15 – 25 lines per hour

Replenishment

Rate

20 – 35 lines per hour

Order Picking

Rate (Typical)

35 – 75 lines per hour

Order Picking

Rate (High end)

75 – 150 lines per hour

Labor Cost per

Pick

$0.10 - $0.43(1)

Accuracy rate 95.0% - 98.0%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Radio Frequency (RF) Directed Picking

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Person to Goods Picking with an

RF Device:

- Pick instructions displayed via

wireless RF devices

- Operators may be assigned to pick

zones

- Scan location and/or product

barcode to verify pick accuracy

Benefits:

- Real-time dispatch and balancing

of work and productivity tracking

- Data capture enabled (e.g. lot#)

- Higher degree of accuracy than

paper

- Relatively low investment cost

Shortcomings:

- Scanning items and handling an

RF scanner can slow down

picking function

- Typically too slow for high

volume operations

Page 12: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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Radio Frequency (RF) Directed Picking

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When to Consider

- Can be used for all warehouse

labor functions from receiving to

shipping to ensure real-time

accuracy for all inventory

movement

- RF picking is most suited for

slow / medium velocity

environments where barcodes

are available at the product or

inventory container level

- RF picking is also suitable for

environments where item-

specific data capture is

essential such as serial number

Investment $3,000 - $5,000 per RF

unit + $30 – 150,000 for

RF network + cost of

WMS

Receiving /

Putaway Rate

15 – 25 lines per hour

Replenishment

Rate

20 – 35 lines per hour

Order Picking

Rate (Typical)

50 – 75 lines per hour

Order Picking

Rate (High end)

75 – 125 lines per hour

Labor Cost per

Pick

$0.12 - $0.30(1)

Accuracy rate 99.0% - 99.90%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Voice or RF Picking to Cart With Lights

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Person to Goods Voice-or RF

Directed Cluster Picking to a

Mobile Cart with Pick to Light

- Typically used for cluster picking

environment (e.g. 12 orders picked

per trip)

- Each order assigned to a container

- Operator directed through pick line

- RF or Voice or Lights to confirm pick

- Put to Light to confirm put

Benefits:

- Reduce travel time by picking

multiple orders in 1 trip

- Flexibility to easily add more item

variety over time

Shortcomings:

- Long pick path as per SKU count

- Carts are heavy and bulky to

maneuver and need wider aisles

- ‘Put’ process requires a high

degree of discipline to sort child

orders/quantities into correct

containers

Page 14: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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Voice or RF Picking to Cart With Lights

14

When to Consider

- Best used in slow or medium

velocity pick environments

where there is a high variety of

slow moving SKUs spread

across a lengthy pick line at

floor level

- Suited for SKUs that can fit

inside a tote or container that

are not excessively heavy to lift

Investment $4,000 - $10,000 per

mobile cart + $30 –

150,000 for RF network +

cost of WMS

Receiving /

Putaway Rate

15 – 25 lines per hour

Replenishment

Rate

20 – 35 lines per hour

Order Picking

Rate (Typical)

75 – 100 lines per hour

Order Picking

Rate (High end)

100 – 130 lines per hour

Labor Cost per

Pick

$0.115 - $0.20(1)

Accuracy rate 99.0% - 99.75%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Pick to Lights With Conveyors

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Person to Goods Pick to Light to

Conveyor

- Operators are assigned to specific pick

zones alongside conveyor

- Each pick location is equipped with a

light and a readout display

- Operator scans tote/carton ID(s) to

invoke pick tasks for the order

- Operator presses lighted button to

validate pick accuracy

Benefits:

- Enables high speed order picking for

high volume throughput operations

- Conveyors reduce travel time

- Highest levels of picking accuracy

- Dynamic workload balancing & Pick &

Pass can be supported

Shortcomings:

- System cost is a function of the SKU

count – each pick location requires a

light

- One picker per zone

- Data capture is challenging

- Requires accurate replenishment

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Pick to Lights With Conveyors

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When to Consider

- Best used in high velocity pick

environments where there is a

high volume of order lines

associated with a low to

medium variety of SKUs

- Suited for SKUs that can fit

inside a tote or container that is

conveyable

- Also suitable for reverse picking

or “put to store” concept widely

used in retail apparel

Investment $100 - $130 per location

+ $50 – 250,000 for

software + cost of WMS

Receiving /

Putaway Rate

15 – 25 lines per hour

Replenishment

Rate

20 – 35 lines per hour

Order Picking

Rate (Typical)

100 – 225 lines per hour

Order Picking

Rate (High end)

225 – 325 lines per hour

Labor Cost per

Pick

$0.046 - $0.15(1)

Accuracy rate 99.95% - 99.99%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Voice Directed Picking With RF Option

17

Person to Goods Voice Directed

Picking

- Pick instructions relayed to operators via

wireless voice devices

- Operator dialogues via headset to

validate pick location, item code, UPC or

other alias code to verify pick accuracy

- Option to combine with RF scanning for

required data capture function (e.g. lot#)

Benefits:

- Hands-free operation highly suited for

handling full cases, heavy or bulky items

- More efficient than paper or RF picking

by 20% - 30%

- Flexibility due to dynamic workload

balancing – operators can work in all

zones

- Fast learning curve: Easy to train

Shortcomings:

- Data capture requires use of RF

device which will slow down the pick

process

- May be too slow for high volume split

case picking environments

Page 18: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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Voice Directed Picking With RF Option

18

When to Consider

- Best used in high velocity full

case pick environments where

the benefit of hands free is

realized

- Ideal for cold storage

environments

- Ideal for split case

environments where SKU

variety is high and pick to light

is too expensive

Investment $3,000 - $7,500 per voice

unit + $50 – 100,000 for

software + cost of WMS

Receiving /

Putaway Rate

15 – 25 lines per hour

Replenishment

Rate

20 – 35 lines per hour

Order Picking

Rate (Typical)

100 – 175 lines per hour

Order Picking

Rate (High end)

175 – 225 lines per hour(2)

Labor Cost per

Pick

$0.067 - $0.15(1)

Accuracy rate 99.95% - 99.99%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

(2) Rates can be higher if batch picking of full cases to conveyor belt picking is used

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Order Selection Time Breakdown

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Order Setup, 10.0%

Travel Time, 50.0%

Search, 15.0%

Pick and Put, 15.0%

Other, 10.0%

Order Selection Time by Activity

Travel time typically accounts for 50+% of the order selection job function which is why goods to person systems can significantly

improve productivity.

Page 20: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

Goods to Person Picking Strategies

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Horizontal Carousels

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Goods to Person to Horizontal

Carousels

- Products stored in bin locations within

horizontal rotating carousels which are

typically setup as a set of 2 – 3 pods per

operator / pick station

- Carousels rotate to bring required product

to operator

- Operator picks one or more orders at a

time and confirms via RF scanner or voice

terminal

- Remaining carousels rotate to prepare for

next pick to minimize dwell time

Benefits:

- No travel time therefore higher pick rates

- No operating aisles – high density storage

- Can accommodate a high SKU variety in

small warehouse footprint

-

Shortcomings:

- Replenishment of carousel

requires quiet time with no

picking; or a slow down in the

overall throughput of machine

- Throughput capacity of carousel is

limited by maximum operator pick

rate

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Horizontal Carousels

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When to Consider

- If the entire system is

intelligently designed with put to

light to batch pick multiple

orders concurrently, carousels

can be used to support high-

speed high-throughput split

case environments

- However, more typical

application is for slow moving

parts storage where throughput

is relatively low

- Most suitable for small cube

SKUs that have high order lines

Investment $75,000 - $125,000 per

carousel + $100,000 cost

of WCS & WMS

Receiving /

Putaway Rate

40 – 115 lines per hour

Replenishment

Rate

Can potentially be

eliminated(2)

Order Picking

Rate (Typical)

150 – 350 lines per hour

Order Picking

Rate (High end)

350 – 600 lines per hour

Labor Cost per

Pick

$0.025 - $0.010(1)

Accuracy rate 99.85% - 99.95%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

(2) Carousels are now available combined with automated ASRS miniload machines that

perform concurrent extraction and replenishment functions such that shut down is not

required during picking operations

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ASRS Miniload

23

Goods to Person to Miniload

ASRS

- At receiving, products are placed into

standardized entities (containers or

pans) that get conveyed to induction

points for the miniload ASRS system

- ASRS automatically stores and

retrieves containers into a storage

buffer

- ASRS extracts and deposits

containers either to dynamic floor-

level pick locations; or to conveyors

for transfer to picking workstations

- Operator picks required SKU/Quantity

and container with residual inventory

is conveyed back to ASRS miniload to

be returned to storage

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ASRS Miniload

24

Benefits:

- No travel time therefore higher pick rates

- Eliminates putaway and replenishment labor

- Product can be stored in original cartons

- Very narrow aisles (e.g. 36”) for ASRS

machine therefore high density storage

- Can accommodate a high SKU variety in

small warehouse footprint

- Can be deployed up to 60’ high

Shortcomings:

- Medium to slow throughput capability

- Throughput capacity of Miniload ASRS is

limited to the machine’s vertical and

horizontal speed therefore only a limited

number of cycles (70 – 150) available per

aisle

Page 25: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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ASRS Miniload

25

When to Consider

- High variety of slow moving

parts that require high density

storage to minimize warehouse

space requirements

- Ideal for environments where

high speed order turnaround

time is a need or presents a

competitive advantage

- Ideal for products that require a

secure storage environment or

for kitting operations

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

Investment $500 – 750,000 per

ASRS Miniload Aisle +

WCS & WMS + $100 –

250K services

Receiving /

Putaway Rate

40 – 160 lines per hour

Replenishment

Rate

Eliminated

Order Picking

Rate (Typical)

150 – 175 lines per hour

Order Picking

Rate (High end)

175 – 200 lines per hour

Labor Cost per

Pick

$0.075 - $0.10(1)

Accuracy rate 99.95% - 99.99%

Page 26: How to Select a Split Case Picking System - MWPVL · How to Select a Split Case Picking ... In split case warehouse operations, order picking is costly and typically accounts for

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Click&Pick™ Powered by AutoStore

26

Goods to Person

Click&Pick™ System

- At receiving, products are placed into

standardized totes that get conveyed

to induction points for the AutoStore

system

- Robotic mobile vehicles move on an

XY axis atop a 17’ high storage buffer

consisting of vertical stacks of totes

- Robots automatically retrieve totes

from the vertical stacks for

presentation at picking work stations

- Operator picks required SKU/Quantity

and tote with residual inventory is

returned back to the top of the cube to

be stored in a vertical stack

Autostore robots are equipped

with a hoist that uses 4 rollup

steel bands that reach into a

stack to pull out the tote.

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Click&Pick™ Powered by AutoStore

27

Benefits:

- No travel time therefore higher pick rates

- Operators can pick one or many orders

concurrently

- Eliminates putaway and replenishment labor

- Top of Grid is at 17-3” in height – no

operating aisles or lost space. Preferred

height is 22’ CSH

- Can accommodate a very high SKU variety

in small warehouse footprint

- Self-optimizing slotting system - faster

movers always at the top of the cube

- Highly secure storage environment

- Flexibility to easily expand system

Shortcomings:

- Constrained to 16’ of product height usage

(but it can be put on a mezzanine)

- Robots run on batteries and are available for

22 hours/day

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Click&Pick™ Powered by AutoStore

28

When to Consider

- High variety of slow moving

parts that require high density

storage to minimize warehouse

space requirements

- Ideal for environments where

products can fit inside the

standard dimensional (15.75"

wide x 23.6" long x 12.2" or 7.9”

high) and weight (65 LBs)

constraints of the tote

- Ideal for products that require a

secure storage environment

- Also being used for high volume

retail (e.g. Walmart ASDA UK)

Investment $1 Million for 10 robots with

1 station for picking + 1

station for replenishment

for up to 5,000 SKUs

Receiving /

Putaway Rate

40 – 160 lines per hour

Replenishment

Rate

Eliminated

Order Picking

Rate (Typical)

250 – 300 lines per hour

Order Picking

Rate (High end)

300 – 600 lines per hour

Labor Cost per

Pick

$0.025 - $0.06(1)

Accuracy rate 99.95% - 99.99%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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KIVA Systems

29

Goods to Person to KIVA

System

- At receiving, products are replenished

to shelving pods that are retrieved

and transported by KIVA robots

- At picking, KIVA robots fetch the

shelving pods (or pallets) and

transport them to work picking

station(s) where operators perform

continuous picking

- Operator typically picks multiple

orders concurrently with the aid of a

laser pointer and put to light to ensure

accuracy

- Robot returns shelf pod back to

storage area

KIVA robots optimally transport

shelf pods or pallets to picking

work stations to minimize

operator dwell time

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KIVA Systems

30

Benefits:

- No travel time therefore higher pick rates

- Operators typically pick 1 to 6 orders

concurrently

- Eliminates putaway and replenishment labor

- Sophisticated software used to optimize all

robot activity to minimize investment

requirement and labor efficiency

- Highest flexibility to expand or relocate

system to a new building

Shortcomings:

- Acquired by Amazon has caused concerns

and uncertainty in the market place

- System makes poor use of height unless

extensive infrastructural mezzanines /

elevators / conveyors are used

- Pick station ergonomics not optimal

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KIVA Systems

31

When to Consider

- No competitive relationship to

Amazon

- Highly dynamic and

unpredictable growth rates

(internet order fulfillment)

whereby a there is a high need

for flexibility, adaptability and

scalability with minimal

infrastructural ties to the floor

- Low ceiling height buildings

- Companies seeking a high

“wow” factor as part of their

marketing efforts

Investment DC with 50 -100 robots

costs between $2 to 4

Million

Receiving /

Putaway Rate

40 – 160 lines per hour

Replenishment

Rate

Eliminated

Order Picking

Rate (Typical)

300 – 500 lines per hour

Order Picking

Rate (High end)

500 – 800 lines per hour

Labor Cost per

Pick

$0.019 - $0.05(1)

Accuracy rate 99.95% - 99.99%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Multi-Shuttle System

32

Goods to Person to Multi-

Shuttle System

- At receiving, split case products are

placed into standard entities

(containers or trays). Full cases can

be stored as is.

- Goods conveyed to induction points at

a storage buffer. Vertical lifts

transport containers to storage levels.

Shuttle robots powered by busbars

store and retrieve goods up to 2-deep.

- Operator typically picks 1,6,24 or

more orders at work station

- Residual inventory in container is

moved by robotic shuttle back into the

storage buffer

Multi-shuttle robots

automatically store and retrieve

cases, totes or trays in a 2-deep

storage buffer for presentation

to pick work stations

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Multi-Shuttle System

33

Benefits:

- Incoming containers are presented within 1

second of outgoing container being taken

away which yields the highest levels of

picking productivity

- Ergonomic workstations can be designed for

operators to pick 1, 6, or 24+ orders

concurrently

- Eliminates putaway and replenishment labor

- Extremely high throughput and storage

capacity up to 40’ high

- Robotic shuttles can roam across vertical

levels or to other aisles in the storage buffer

Shortcomings:

- Capital investment requirement requires

high throughput volume to be justified

- Certain size and weight restrictions apply for

the shuttle to be able to handle the product

Pick work stations are typically

configured to pick 1, 6, 24 or

more orders at a time. Pick

rates slow down as this number

increases.

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Multi-Shuttle System

34

When to Consider

- Extremely high split case

throughput environments where

high productivity is critical to

success

- High speed order turnaround

time enables competitive

advantage

- High security / high availability

requirement

- Storage buffer needed for

sequencing of containers in

between the picking and

palletizing process (e..g. ensure

heaviest totes are place at

bottom of pallet)

Investment $650,000 - $1.2 Million

per operating aisle

depending on the number

of shuttle robots needed

Receiving /

Putaway Rate

40 – 160 lines per hour

Replenishment

Rate

Eliminated

Order Picking

Rate (Typical)

300 – 500 lines per hour

Order Picking

Rate (High end)

500 – 800 lines per hour

Labor Cost per

Pick

$0.019 - $0.05(1)

Accuracy rate 99.95% - 99.99%

(1) Based on fully loaded direct labor wage rate of $US 15.00 per hour

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Other Systems Not Reviewed

35

Due to time constraints, we cannot discuss all

systems. The ones we omitted from this

presentation include:

- Vertical lift modules / carousels

- Carousels with ASRS Miniload extractors

- Automated dispensing systems

- Tilt Tray Sorters

- A-Frames

- Case sequencers

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Executive Summary of Options – Part 1

36

Scenario Concept

(1) Environment System / Technology Capital Investment

Overview

1 PTG Paper-Based Paper Pick List Minimal: $5 - $10K

2 PTG RF RF Scanning $3-5K / User + $30 - 150K for infrastructure

3 PTG Pick to Cart Pick to Light, Voice or RF $4-10K / Cart + $30 - 150K for infrastructure

4 PTG Pick to Light Pick to Light to Conveyor $100 - $130 per location + $50 – 250K for

infrastructure

5 PTG Voice / RF Voice with Optional RF $3 - $7.5K per voice unit + $50 – 100K for

infrastructure

6 GTP Automated Horizontal Carousel $75 - $125K per carousel + $100K cost of

infrastructure

7 GTP Automated Miniload ASRS $500 – 750K per ASRS Miniload Aisle + $100-

250K services

8 GTP Automated AutoStore Click&Pick™

$1 Million for 10 robots with 1 station for picking + 1

station for replenishment for up to 5,000 SKUs.

9 GTP Automated Kiva Systems

DC with 50 -100 robots costs between $2 to 4

Million

10 GTP Automated Multi-Shuttle $650,000 - $1.2 Million per operating aisle

depending on the number of shuttle robots needed.

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Executive Summary of Options – Part 2

37

Scenario System / Technology

Receiving

-Putaway

Rate

(LPH)

Replenishment

Rate

(LPH)

Order

Picking Rate

Typical (LPH)

Order

Picking Rate

High (LPH)

Labor Cost

per Pick

Accuracy

Rate

1 Paper Pick List 15 - 25 20 - 35 35 - 75 75 - 150 $0.10 - $0.43 95.0% - 98.00%

2 RF Scanning 15 - 25 20 - 35 50 - 75 75 - 125 $0.12 - $0.30 99.0% - 99.90%

3 Pick to Cart 15 - 25 20 - 35 75 - 100 100 - 130 $0.115 - $0.20 99.0% - 99.75%

4 Pick to Light to Conveyor 15 - 25 20 - 35 100 - 225 225 - 325 $0.046 - $0.15 99.95% - 99.99%

5 Voice with Optional RF 15 - 25 20 - 35 100 - 175 175 - 225 $0.067 - $0.15 99.95% - 99.99%

6 Horizontal Carousel 40 - 115 0 150 - 350 350 - 600 $0.025 - $0.010 99.85% - 99.95%

7 Miniload ASRS 40 - 160 0 150 - 175 175 - 200 $0.075 - $0.10 99.95% - 99.99%

8 AutoStore Click&Pick™ 40 - 160 0 250 - 300 300 - 600 $0.025 - $0.06 99.95% - 99.99%

9 Kiva Systems 40 - 160 0 300 - 500 500 - 800 $0.019 - $0.05 99.95% - 99.99%

10 Multi-Shuttle 40 - 160 0 300 - 500 500 - 800 $0.019 - $0.05 99.95% - 99.99%

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Executive Summary of Options – Part 3

38

Scenario System / Technology Benefits Shortcomings

1 Paper Pick List Simple and InexpensiveLow productivity and accuracy

Not real time

2 RF Scanning Real time data capture at a low

investment

Too slow for high volume picking due

to handling device/scanning

3 Pick to Cart Less travel time due to cluster pickingCarts are heavy and slow to maneuver

and put errors can easily be made

4Pick to Light to

Conveyor

High speed picking with high accuracy

and dynamic balancing

High cost solution when SKU count is

high, limited data capture

5 Voice with Optional RF Hands free, fast learning curve,

Flexible to use across entire DC

May be too slow for some high volume

operations

6 Horizontal Carousel No travel time, high density storage

therefore low footprint

Carousel replenishment requires quiet

time; constrained throughput capacity

7 Miniload ASRS No travel time, high density storage

therefore low footprint up to 60'Slow to Medium throughput capability

8 AutoStore Click&Pick™High pick rates, high accuracy, high

storage density for large SKU count

Constrained to 16' of height and robots

run on batteries

9 Kiva Systems High pick rates and flexible system to

relocate

Amazon acquisition causing market

uncertainty; weak use of height

10 Multi-Shuttle High pick rates, high accuracy, highest

throughput, flexibilityHigher capital investment requirement

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Executive Summary of Options – Part 3

39

Scenario System / Technology

0

to

1,000

1,000

to

5,000

5,000

to

10,000

10,000

to

15,000

15,000

to

20,000

20,000

to

25,000

25,000

to

50,000

50,000

to

100,000

100,000

to

150,000

150,000

to

250,000+

1 Paper Pick List

2 RF Scanning

3 Pick to Cart

4 Pick to Light to Conveyor

5 Voice with Optional RF

6 Horizontal Carousel

7 Miniload ASRS

8 AutoStore Click&Pick™

9 Kiva Systems

10 Multi-Shuttle

Strong Fit

Moderate Fit

Weak Fit

Order Lines Throughput per Day

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Key Takeaways

40

We have looked at 10 different split case picking systems at a

high level ; there are also others that we did not have time for.

There is no such thing as a “best technology” because the

business requirements vary by type of operation

Choosing a split case picking system with a good fit requires

an understanding of the distribution center operational profile,

shapes and sizes of products, flexibility requirements, overall

throughput volumes, etc.

As volumes increase above 10,000 order lines/day , the fit for

automation solutions starts to provides more shareholder value

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Session Smarts Additional Resources

The following white papers are available with much further detail:

http://www.mwpvl.com/html/swisslog_autostore_review.html

http://www.mwpvl.com/html/kiva_systems.html

http://www.mwpvl.com/html/dematic_multishuttle_review.html

http://www.mwpvl.com/html/order_pick_technologies.html

41

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Questions

42